| 1. | Establish your budget
Interest rates vary and establishing your budget is something you should take seriously.
Professional advice from a financial advisor or mortgage broker is highly recommended.
Just to get you started have a look at our online calculators.
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| 2. | Decide on your criteria
Critical things you need to consider as you start your search...
- location, location, location?
- one, two, three bedrooms?
- bathrooms, ensuites, built-in robes?
- car parking, garage, security?
- outside area, balcony, bbq?
- are you prepared to renovate?
Sit down and make a "minimum" list and stick to it!
Be prepared to walk away from properties that don't match your criteria... even if they sound great.
Compromising on your "minimum" list may end in buyer's remorse. And that is never a good place to be.
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| 3. | Research the market
Researching the market has never been easier as the main media used by up-to-date real estate agents are the internet and paper.
Gone are the days of walking the streets from agent to agent, driving around looking at properties that the agent "thinks" you might like.
You can now sit at home or a nice café and walk-through properties that interest you. Virtual tours and video are now commonplace and can give a real feel for a property.
We suggest you sign up for property alerts to receive emails about properties that match your criteria.
This can save you lots of time. Instead of wading through website pages of properties that just aren't what you are looking for you will get an email with just the latest and updated listings.
Good property alerts:
deakinmcdonald.com.au
realeastate.com.au
domain.com.au
Attend open houses and be a spectator at auctions of properties that match your criteria.
You get to hear the questions seasoned buyers ask and it may influence you to change some of your non-essential criteria.
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| 4. | Chat to agents
Local agents have a good feel for the market trends in the area they work in.
Most good agents have access to a range of up-to-date resources and study everything that is published to keep on top of their industry.
They can be a great information source and never be shy to ask even the most trivial question.
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| 5. | Get pre-approval
Your ideal property can arrive on the market at any time and having your finance pre-approved means you can move quickly.
Sounds obvious but so many buyers miss out on their ideal home because they haven't set themselves up to be in a position to make an offer and secure the purchase of a property.
Try to deal with a broker or financial instution that offers you good flexibility and a range of products.
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| 6. | Request a contract
Right, you've found a property you like! All your expectations line up.
Ask the agent for a copy of the contract for sale.
The contract can be sent hard copy by courier or by email to you or your solicitor.
Either way make sure your solicitor gets a copy as they will advise you of any issues.
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| 7. | Do your inspections
Ok, this bit is important so you know what you are really looking at.
There are two main reports that we recommend you need to consider: Generally you will only need a strata report for strata properties, like apartments.
The report should indicate if there are any issues with the actual building so doing a pest and building inspection is not really necessary.
However, some solicitors do recommend getting a building report and if that makes you comfortable then by all by means do so.
We highly recommend you get a pest and building inspection for Torrens title properties; houses, townhouses, semis, etc.
Your solicitor or conveyancer can arrange for the reports to be done and can also read the report and let you know any issues.
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| 8. | Submit an offer
At this point you have your solicitor's advice which includes any inspection reports and you are now confident to make an offer to the agent.
Agents are obliged by law to submit all offers to the vendor so the response to your offer will be from the vendor.
Don't be disillusioned if your offer is rejected. This is a negotiation phase and you should be prepared to adjust your offer to meet the market.
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| 9. | Buying at auction
A lot of buyers find auctions very stressful, and understandably. You are there in front of lots of people and the agent is hovering and asking what you are going to do. Take a breath and relax. It can be a very rewarding experience as all buyers are out in the open and you get to decide if and when you want to bid on the property for sale.
If you want to bid at an auction you are required by law to register to bid and that also means if you are bidding on behalf of another person with appropriate authority. You will need to bring proof of identification and you will be issued with a bidders number. If you wish to place a bid on the property just hold up your bidders number and indicate your bid to the auctioneer. Make sure the auctioneer acknowledges your number and bid.
If the property fails to sell, the highest bidder generally has the first right to continue the negotiation of the sale.
Get more info from the Office of Fair Trading...
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| 10. | Deposit and exchange
Once you have received an acceptance of your offer or you have been successful at an auction, you will then be required to pay the deposit and sign one copy of the contract for sale. The vendor signs the other copy of the contract and the contracts are then exchanged. Basically what exchange of contracts means is that your solicitor gets the copy signed by the vendor and the vendor's solicitor gets the copy signed by you.
The deposit is generally 10% however this can vary by negotiation.
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| 11. | Pre-settlement inspection
We advise all our purchasers to do a pre-settlement inspection.
This ensures that the property is in the same condition as when you agreed to buy it. Also that all the inclusions are as per the contract.
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| 12. | Final settlement
It's all done!
Notification by way of "order on the agent" from the solicitors will mean that the agent is able to release the keys of your new home to you.
It also means that the title of the property transfers to you and the money has changed hands.
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